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Bond P is a premium bond with a coupon of 8.3percent , a YTM of 6.64percent, and 16years to maturity. Bond D is a discount
Bond P is a premium bond with a coupon of 8.3percent , a YTM of 6.64percent, and 16years to maturity. Bond D is a discount bond with a coupon of 8.3 percent, a YTM of 9.64percent, and also 16years to maturity. If interest rates remain unchanged, what is the difference inthe prices of these bonds9 year from now?(i.e.,Price of Bond P -Price of Bond D) Note:Corporate bonds pay coupons twice a year.
(Input all amounts as positive values. Do not round intermediate calculations. Round your answers to 2 decimal places.)
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